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"It's not legally binding and it doesn't say what Mr Rudd says it says," Mr Abbott told reporters in Melbourne on Monday.

"It doesn't say that everyone who comes to Australia illegally by boat will go to PNG and it doesn't say that no one who goes to PNG will ever come to Australia.

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"Mr Rudd is being misleading to the point of dishonesty."

But Immigration Minister Tony Burke says the policy is already having an effect, saying on Monday morning that reports from people smugglers and asylum seekers indicate the message is already getting through.

''Does this unilaterally mean we can give a date on when boats stop? No,'' he told ABC radio on Monday.

''But certainly, be in no doubt the product that people smugglers are selling is no longer available.''

Mr Burke says comments from PNG Prime Minister Peter O'Neill about his country taking as many refugees as capacity allows had been misinterpreted by some as meaning there is a cap on numbers. Rather, the Australian government will continue to increase PNG's capacity, he says.

Initially flatfooted by the PNG solution announced on Friday afternoon, the opposition has since gone on the attack, citing a range of concerns with the agreement.

Mr Rudd is being misleading to the point of dishonesty.

Mr Abbott said the plan wouldn't work because Mr Rudd and Labor lacked the will and resolve to protect Australia's borders.

"The overwhelming majority of the people who are coming to our country illegally by boat have come via other countries where they could readily have claimed asylum," he said.

"The fact that they are determined not to stop until they come to Australia means that they are overwhelmingly economic migrants not genuine asylum seekers.

"This is the point that it's taken this government five years to understand."

Mr Burke said the opposition's response tothe plan was extraordinary.

''I could not believe the way he and (his immigration spokesman) Scott Morrison stood up and tried to send a message out to Australia and, therefore, to the people involved in these operations that it's still okay to come,'' Mr Burke said.

''If people take Tony Abbott at his word and decide to test our resolve, they will find out that we are resolved to follow through on this policy.''